What is my home worth in today's market?

Setting a strategic listing price is vital to selling your home. Determining your homes value is one of the most important factors in setting an appropriate listing price. So, how do we establish an accurate value?

A Comparable Market Analysis is a key tool Tammy and Brian use to determine your homes value. Essentially, this tool compares your home to other similar homes that have sold recently and to other similar homes currently on the market. This information, adjusted for the specifics of your home, coupled with market trends and your sense of urgency will help us develop a listing price that makes sense. Keep in mind, the homes value and your pricing strategy are related but are not the same.

Let's take a deeper look at the factors that go into establishing value.

First: Establish the characteristics of your house.

Most buyers start their search primarily looking at:

• Total square feet
• Number of bedrooms
• Number of bathrooms
• Location

Because of this, these factors are an important part of value. Other factor such as age of the home, lot size, amenities, parking and others also play a role.

Square footage is most often pulled from the county assessor's office. In some cases, it may be necessary to physically measure the house or to rely on builder plans to establish square footage. Square footage does not include garage space.

It is required that a room has a closet and a large enough window in order to qualify as a bedroom. In some cases we may be able to list a bedroom as "non-conforming" but still include it in the bedroom count for search purposes. A bonus room without a closet does not qualify as a bedroom; however, many buyers may see this type of room as a valuable multi-purpose room.

Second: Assess the condition of the home and grounds.

Condition can make a significant difference in the market value of a property. In today's market, a homes poor condition can keep a well priced home constantly in second place. Many buyers have a difficult time "seeing past" rough edges on a house. The higher the approximate value of your home, the more likely poor condition will bring the value down.

Third: Know the lot size and amenities specific to your home.

Many buyers base their initial on-line search partly on lot size. As such, it is important to highlight any advantage your home may have regarding lot size.

• Does your lot configuration allow for RV parking?
• How do your homes amenities compare to other similar homes in your neighborhood?
• Do you have a fireplace while others do not?
• Do you have granite in the kitchen and the bathrooms?

Pictures are an excellent way to highlight any amenities that help your property stand out.

Fourth: Compile a list of comparable properties.

Comparable properties are those with similar characteristics to your home starting with Square Footage, number of bedrooms and bathrooms and lot size. Start in your neighborhood and expand to other similar neighborhoods. It is important to identify approximately 3-6 comparable Sold properties.

In this rapidly changing market, it is important to compile a list of comparable Sold properties (homes sold in the last 6 months) AND to evaluate a list of comparable Active listings. These Active listings are your competitors. Active listings can also give you a better idea of where the market is heading. Your pricing strategy will definitely need to consider Active comparables.

Fifth: make adjustments based on differences between comparables and your home.

Your home may have granite throughout but it may have a smaller lot size. Your home may not have a fireplace but it may have RV parking. Each of the more desirable features of your home should be added to the price of the comparable property. Conversely, each of the less valuable features of your home should lower the price of the comparable.

For example, if the comparable home sold for $200,000 and did not include a fireplace that your home includes, then that home may have sold for $205,000 if it did have the fireplace. All other things equal, your home could be expected to sell for $205,000. Tammy and Brian can provide guidance in assessing comparable properties.

Sixth: Adjust for other market factors.

• Is the tax credit going to affect you homes sale price?
• Have the number of available listings recently changed dramatically in your neighborhood?
• Are interest rates up or down?
• Are builders building homes similar to yours?

Prices have changed dramatically over the past several years and continue to be less than stable. What you paid for the home even two years ago will likely have little impact on what the home is worth today.

Unfortunately, prices are based on the market demand rather than on the amount you may need to get from the house. In addition, what you owe may affect your pricing strategy but does not affect the market value of the home. Ultimately, what determines the value is what a buyer is willing to pay in a timeframe and under conditions that work for you.